18 Out Of Prison Employment Statistics [2023]: Economic Opportunity For Formerly Incarcerated

Research Summary: Many prisoners just want to do their time and get back to life on the outside. However, finding a job as a formerly incarcerated person (FIP) can come with a whole lot of challenges.

Luckily, we’ve assessed everything from the unemployment rate for FIPs to the annual income of those who find jobs. According to our extensive research:

• FIPs have a total unemployment rate of over 27%.

• The average annual income for prisoners on release is $19,610.

• 64% of unemployed men in their 30s have a criminal record.

• After three years, FIPs with employment only have a 16% recidivism rate, compared to 52% of unemployed FIPs.

For further analysis, we broke down the data in the following ways:
General | Unemployment | Income | Demographics

General Employment Statistics for Formerly Incarcerated People

Employment is a crucial step toward the success of FIPs. To understand more about the state of employed and unemployed FIPs, here are some general facts and statistics:

• Over 600,000 individuals are released from state and federal prison each year.

  There are a lot of people that go through the US prison system. More than two-thirds of the 600,000 released are rearrested within three years, and half are reincarcerated. For those who don’t get out, 9 million are cycled through local jails.

• The unemployment rate for FIPs is 5x higher than non-FIPs.

  And the numbers are even worse for homelessness, as FIPs are 10x more likely to be homeless than non-FIPs.

• 44% of FIPs are re-arrested less than one year after their release.

  Unfortunately, 82% of all FIPs are re-arrested at some point within ten years of their release.

• Up to 89% of FIPs who are re-arrested are unemployed.

  Those who are unemployed are more than 2x more likely to be re-arrested than their unemployed counterparts.

Formerly Incarcerated People Unemployment Statistics

Unemployment is one of the most pressing and prevalent issues for FIPs. To discover just how prevalent, here are some insights our research uncovered:

• Prisoners who were released for over four years still have an average unemployment rate of 13.6%.

  By 2008, prisoners released in 2004 still had high unemployment rates. This rate is nearly as high as the peak 15% unemployment seen during the 2020 COVID-19 Pandemic.

  Years since release	Unemployment rate
  Less than two years	31.6%
  Two to three years	21.1%
  Over four years	13.6%

• The average FIP is employed over 25% less of the time when compared to non-FIP employees.

  The typical American employee is employed 78% of the time, whereas the average FIP is only employed 58% of the time.

• The average FIP will have 3.4 jobs over a four-year period post-release.

  The jobs FIPs typically have a lack of security or upward mobility, often causing them to be short-lived. This further exacerbates the problem of unemployment by making FIPs look less desirable on resumes.

Formerly Incarcerated People Income Statistics

FIPs have exceptionally low incomes in the US, even when compared to other underpaid demographics. To be more specific, here are some key facts about the average FIP income:

• Within the first year of release, FIPs earn 53% less per week than the average US employee.

  Upon release, FIPs typically make $269 per week within the first year. Comparably, the average American employee makes $507 per week.

• FIPs make an average of $464 after four years of being released.

  Starting with an average income of only $269 per week, the average weekly income of FIPs increases by 72.5% in only a few years.

• Employing just 100 FIPs would increase their lifetime earnings by $55 million.

  This also comes with benefits to the economy, as it would increase their income and sales tax contributions by $2.67 million.

Formerly Incarcerated People Employment Statistics by Demographics

When it comes to the accessibility of employment for FIPs, not all demographics are created equal. Many women and people of color find it especially difficult to secure jobs after their release. According to our extensive research:

• Formerly incarcerated black women have an unemployment rate 137% higher than their white male counterparts.

  Formerly incarcerated black women and men are far more likely to experience unemployment when compared to their white counterparts. For instance, the unemployment rate for black women is 43.6%, while its only 18.4% for white men.

  Demographic	FIP unemployment rate	General population unemployment rate
  Black women	43.6%	6.4%
  Black men	35.2%	7.7%
  White women	23.2%	4.3%
  White men	18.4%	4.3%

• Between FIPs and non-FIPs, women experience greater disparity in unemployment rates.

  Formerly incarcerated black and white women are 5.8x and 4.4x more likely to be unemployed compared to their unincarcerated counterparts, respectively. On the other hand, both white and black men are between 3.2x-3.6x more likely to be unemployed compared to non-FIP men.

  FIP Demographic	Increased likelihood of being unemployed (compared to the same non-FIP demographic)
  Black women	581.25%
  White women	452.38%
  Black men	357.14%
  White men	327.91%

• 87% of formerly incarcerated white men receive full-time work, compared to only 67% of formerly incarcerated black women.

  When it comes to full-time work opportunities, all female FIPs lag behind their male counterparts. For example, only 70% of female Hispanic FIPs work full-time jobs, compared to 80% of Hispanic men.

  Demographic	Full-time work	Part-time work	Occasional work
  Black women	67%	29%	4%
  Hispanic women	70%	25%	5%
  White women	76%	22%	2%
  Black men	77%	15%	8%
  Hispanic men	80%	14%	6%
  White men	87%	10%	4%

• Only 11% of FIPs complete a college degree.

  This is split between the 9% who achieve a Bachelor’s degree and the 2% who complete an Associate’s. However, another 7% receive a certificate from a college or trade school.

Out Of Prison Employment Statistics FAQ

1. How hard is it for a formerly incarcerated person to get a job?

   It can be exceptionally difficult for FIPs to get a job due to social perception and liability issues. Many companies refuse to hire FIPs due to the fact that if that person were to commit a crime on the job, the company could also be found legally liable for that crime. As a result, the company could lose hundreds of thousands of dollars.

   This and other social factors contribute to the fact that the FIP unemployment rate is 27% (much higher than the national average.

   However, there are resources FIPs can use to make their job search easier. This webpage by the Library of Congress lists the many resources available.

2. What percentage of formerly incarcerated people get a job within a year of release?

   Only 25%-40% of FIPs land a job after a year of being released. While these numbers do depend heavily on the specific location, FIPs find it exceptionally difficult to get a job within the first year of release.

   Luckily, things do get better, though. Between less than two years of being out and over four years, the unemployment rate among FIPs drops from 31.6% to 13.6%.

3. Why should companies hire formerly incarcerated people?

   There are many reasons why companies should hire FIPs. These include

   • Recidivism reduction. FIPs with employment only have a 16% recidivism rate after three years, compared to 52% of unemployed FIPs

   • Stimulates the economy. Employing just 100 FIPs would increase their income tax contributions by $1.9 million and boost sales tax revenues by $770,000. It would also save the government millions in criminal justice fees.

   • Encourages self-improvement. Employing FIPs gives them a drive and purpose, which creates a positive change not only in their lives but also in the broader society.

Conclusion

With an average unemployment rate almost double that of the general population during the peak of the pandemic, formerly incarcerated people face an extremely challenging and inhospitable job market. Even for those who do get jobs, the average annual income for prisoners on release is only $19,610.

However, it’s not all doom and gloom. FIPs who do manage to secure jobs stand a much better chance of reacclimating into society, which is why it’s so important to encourage job hunting. In fact, employed FIPs only have a 16% recidivism rate after three years, compared to 52% of unemployed FIPs.

With all that in mind, it’s vital for FIPs to make use of online resources like the Library of Congress and job board sites in order to secure stable employment.

References

1. Prison Policy Initiative – Out of Prison & Out of Work: Unemployment among formerly incarcerated people

2. United States Census Bureau – Great Recession Had Long-Term Economic Impact on People With Felony Convictions, Prison Time

3. CNBC – 64% of unemployed men in their 30s have criminal records, a barrier to landing a job

4. ASPE – Incarceration & Reentry

5. Building America – Why Should the Transportation Industry Consider Second Chance Hiring?

6. Prison Policy Initiative – Mass Incarceration: The Whole Pie 2022

7. Prison Policy Initiative – New data on formerly incarcerated people’s employment reveal labor market injustices

8. IRLE – Benefits of Higher Education for Formerly Incarcerated People

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.